StockMarketWire.com - Automotive retailer Inchcape cancelled its dividend as business activity across its markets had been impacted by closures or significantly lower business activity.

The company said, however, it had sufficient resources to navigate an extended disruption.

In a bid to preserve cash Inchcape said it would no longer recommend the payment of the previously announced final dividend of 17.9p a share.

Given the high level of uncertainty around the duration and impact of Covid-19, the company also said it was exploring other debt options to further increase its liquidity and flexibility, including the Coronavirus Corporate Financing Facility launched by the UK government.

The company was, however, still operating in 14 markets, albeit at reduced levels, including Australia, Ethiopia and Hong Kong.

'We have stress-tested the impact of various conservative scenarios - including a prolonged period of global shutdowns followed by materially reduced activity throughout the second half of 2020 - and are comfortable that we have sufficient financial resources to navigate an extended period of disruption,' Inchcape said.

At 8:38am: [LON:INCH] Inchcape PLC share price was +23.9p at 459.9p

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